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Hedge fund managers are the smartest investors around.Insider Monkey, a source for free insider trading data, follows corporate insiders because they have access to material, nonpublic information and they sometimes trade illegally.

We also follow hedge fund managers because they have the resources to research public companies extensively and have access to experts who can “guide” them.

Recent insider trading scandals show the extent hedge fund managers are willing to go to get an edge over ordinary investors. We believe we are more likely to beat the market by imitating hedge funds than trading against them.

Based on the transactions of nearly 700 hedge funds, we compiled the list of top 5 stocks hedge funds were buying like crazy during the fourth quarter:

1. General Motors (NYSE:GM): Hedge funds snatched 6% of GM’s outstanding shares and amassed a $3.4 Billion position. There were 112 hedge funds with GM positions at the end of December.

3. LyondellBasell (NYSE:LYB): LyondellBasell is very popular among hedge funds. Since its market cap is much smaller than giant banks or tech companies, hedge funds amassed a 13% share in LYB (NYSE:LYB). There were 99 hedge funds with LYB positions at the end of December and they spent a net $2.5 Billion on LYB during the fourth quarter. Notable hedge funds with LYB holdings are Daniel Loeb’s Third Point, Tom Steyer’s Farallon Capital, David Einhorn’s Greenlight Capital, and Andreas Halvorsen’s Viking Global are among the hedge funds with LYB (NYSE:LYB) positions.

4. JP Morgan (NYSE:JPM): Hedge funds, 164 of them, own 4% of JPM’s outstanding shares. During the fourth quarter, they spent $1.8 Billion to place their bullish bets. Steven Mandel, John Griffin, Bill Miller, and Lee Ainslie are among the high profile hedge fund managers invested in JPM (NYSE:JPM).